What an Auto Insurance Policy Looks Like

An auto insurance policy has three basic parts: the declarations page, the policy form, and a stack of other documents.

Declarations Page

At the beginning of the policy, you’ll find the declarations page. It includes information such as:

• Who is covered under the policy 
• The covered people’s contact information
• Policy period (how long you’re covered)
• Description of covered cars
• Limits of liability for each vehicle: This means how much the insurance company will pay for a covered claim. Beyond the limits, you’ll be responsible for costs out of pocket.

The policy form includes:

• Definitions of policy terms
• Insuring agreement
• Other provisions of auto coverage
  • Endorsement
  • Exclusions: Exclusions are endorsements that exclude certain types of claims from being covered. For example, if you leave your window open and it rains, your policy won’t cover the water damage.
  • Conditions: Conditions explain how and when the provider will carry out the coverage; some conditions are required by law.⁴
  • Riders
  • Covenants present in policy: A covenant is a promise to either do or not do certain activities or meet certain thresholds.
  • Details/specifics of coverage: This includes what types of car insurance coverage you have and don’t have. Full coverage would mean property damage and bodily injury liability insurance, uninsured motorist coverage, comprehensive coverage, collision coverage for damage to your car, and medical payments coverage or personal injury protection (PIP) for your medical bills. However, full coverage is more than any state requires; it pays for damages and injuries to you, your family members, and passengers in at-fault car accidents. Liability insurance covers only the other party’s injuries and property damage.
• Applied discounts: This section lists any auto insurance discounts you took advantage of to save money on insurance rates

These are some other important documents that your policy includes:

• Policy form: Your policy form will explain the benefits and limitations of the policy; think of it as the terms and conditions section.
• Insurance ID card: You’ll need an insurance ID card, either physical or digital, to show proof of insurance. Your ID card will include your:
  • Address
  • Auto policy number
  • Contact information
  • Insurance company name
  • Name
  • Policy period
  • Vehicle details
  • Vehicle identification number (VIN)

• Insurance verification: This is a one-pager that contains the most important information from your policy, including your coverages, limits, vehicle information, and the names of the insured.
• Insurance agreement: Your insurance agreement explains how the policy will operate in terms of paying premiums, complying with requirements, and getting or not getting coverage.
• Exclusions
• Conditions